The Daily Chase: Markets soured by FedEx, GE warnings; Loonie at 2020 low
BNN Bloomberg
We’re still about a month away from the next earnings season, but FedEx set a nasty tone after the markets closed yesterday.
Another bellwether is adding to the sour sentiment this morning after General Electric’s chief financial officer flagged persistent supply-chain challenges. GE shares have been down about five per cent in pre-market trading.
IT’S ALL ABOUT THE U.S. DOLLAR
The Canadian dollar is extending the losses that saw it slip to the lowest level since November 2020 yesterday. But this isn’t really about loonie weakness. We’re at the mercy of the U.S. dollar, which is again rallying against almost every major global currency this morning, and has put the DXY (ie, the dollar index) within about half a point of the all-time high it registered earlier this month. Let’s keep in mind what Bank of Canada Senior Deputy Governor said during a Q&A last week (IE, “It would be nice” for the loonie to be trading higher, to serve as a “buffer” against inflation.)
